Hindustan Lever s Project SHAKTI Marketing FMCG to he Rural Consumer FACTS OF THE CASE: Intense competition from International

l as well as local players in 2000. Necessary for HLL to penetrate the untapped rural with urban markets saturated. Rural Markets were scattered over large areas and per capita consumption was low. Shakti was promoted as a CSR activity. Project Shakti was a unique sales channel due to the reasons apart from its scale and deep rural reach was that it reached the final consumer rather than an outlet which would then sell to consumers. Shakti created a vast local, credible, one-to-one endorsers. CHALLENGES: To expand into rural market while continuing its CSR activity. To reduce costs on training and HR related activities. To expand the Shakti program in more states. To attract investments from the brand houses. To increase confidence and motivation of the enterpreneurs.

S.W.O.T: STRENGTHS Shakti is scalable and sustainable due to socially beneficial aspect Backing of huge Brand House Government and NGO support Difficult to imitate model for competitors and especially in a short time WEAKNESSES Rural markets were scattered over large areas and per capita consumption rates were low. Unequal acceptance of the role of women Entrepreneurs in different states. Poor reach of electronic media and significantly lower literacy levels OPPORTUNITIES Recognition of the role of women by society. Huge untapped rural market Support from government. THREATS Scattered rural markets. Competitors are aping the strategy.

 High need for training of the entrepreneurs.

RECOMMENDATIONS: Select entrepreneurs with some basic level of education. Increase the product variety available with the entrepreneurs Concentrate more on VANI as it acts as a advertising platform & can generate revenues Offer more discount to the entrepreneurs and rely on economies of scale. Entrepreneurs from close proximity can form groups and HLL can sell products to them at a cheaper rate. This would increase their margins. Mobile has become quite popular and hence can be used to promote and market the Shakti campaign. Also it can be used for Brand building exercise of HLL. Presence of Government s National Channel- Doordarshan can used to promote and create mass awareness about the Project SHAKTI.